Newham to improve financial management after £9m fraud allegations

By William Eichler | 16 January 2019

The mayor of Newham has announced plans to form an independent commission to advise the council on how to ‘become a beacon of good practice’ in its financial management.

Rokhsana Fiaz has proposed the creation of an internal control commission in the wake of allegations of a £9m fraud in the local authority’s repairs and maintenance service (RMS) under the previous administration.

A council investigation discovered there was an £8.8m overspend during the 2017/18 financial year, caused by a loss of control over the Keep Newham Moving highways repair programme.

The proposed commission, which will be discussed at an ‘extraordinary meeting’ on Tuesday, would be led by an independent chair, and would look at how the council can become a model of best practice for internal control and governance.

Mayor Fiaz said: ‘I am committed to making Newham LBC more open and transparent than ever before.

‘We are putting things right.

'We have been proactive in resolving the financial mismanagement in RMS and taking clear action.

‘I have instructed the new management team at RMS to implement a whole series of measures designed to offer reassurance on the effectiveness, governance, and efficiency of management, performance and compliance.’

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Finance Management Fraud